FTX's Ongoing Solana Liquidation: A Hidden Buying Opportunity for Long-Term Solana Bulls?

The collapse of FTX in 2022 sent shockwaves through the cryptocurrency market, but its lingering effects on Solana (SOL) continue to shape investor sentiment in 2025. As the exchange's bankruptcy proceedings near their final stages, the liquidation of its massive Solana holdings has created a unique market dynamic: a prolonged period of selling pressure that, paradoxically, may now be masking a strategic entry point for long-term bulls.

The State of FTX's Solana Liquidation: What's Left and How It's Being Managed

FTX's estate initially held 55 million SOL, a figure that had dwindled to 38 million by December 2025 as institutional buyers like Galaxy Digital and Pantera Capital absorbed much of the supply. However, the most volatile phase of the liquidation appears to have passed. The March 2025 unlock of 3.03 million SOL triggered a 17% price drop, underscoring the market's sensitivity to large-scale sales. Yet, as of December 2025, FTX's estate holds $16.3 billion in surplus assets, reducing the urgency for further Solana sales.

The remaining 38 million SOL is being distributed through a vesting schedule extending to 2029, a deliberate strategy to minimize market disruption. Monthly unlocks, such as the December 2025 unstaking of 194,861 SOL ($25.5 million), follow a predictable pattern under court supervision. Institutional buyers, now acting as custodians of these tokens, are gradually releasing them to avoid destabilizing the market. This measured approach suggests that the worst of the selling pressure is behind us, creating a more stable environment for long-term investors.

Solana's Resilience: Infrastructure, Institutional Adoption, and Network Upgrades

Despite the headwinds from FTX's liquidation, Solana's market resilience in 2025 has been remarkable. A 20% price crash in November 2025-driven by Federal Reserve policy concerns and profit-taking-tested the network's endurance. Yet, Solana's technical infrastructure held firm, maintaining its reputation for high-speed transactions and low costs.

Institutional confidence has also rebounded. The Bitwise Solana ETF (BSOL) attracted $199 million in new capital, signaling renewed trust in the asset class. Meanwhile, the Solana Foundation's redistribution of locked tokens through custodians like Kraken and BitGo has reduced sell pressure and restored market confidence. On the technical front, the Alpenglow Consensus Upgrade slashed transaction finality to 150 milliseconds and cut validator costs by 80%, reinforcing Solana's position as a scalable layer-1 blockchain.

Network decentralization has also improved, with validator nodes expanding to over 5,000 across 40 countries. These upgrades, combined with rising developer activity, suggest that Solana's fundamentals are robust enough to withstand ongoing selling pressure.

Technical Analysis: Support Levels and Price Projections

From a technical perspective, Solana's price action in 2025 offers both caution and opportunity. As of early 2025, the asset trades near $148.84, having rebounded 86% from April lows. Key support is identified at $123.65, while resistance levels sit at $161.25 and $252.5. Analysts project a 2025 price range of $150–$230, with long-term forecasts anticipating a potential $1,000 target by 2030 under sustained institutional adoption.

The current consolidation phase around $148.84 presents a critical juncture. If the price holds above $123.65, it could signal a bullish reversal, particularly as FTX's liquidation tailwinds diminish. Conversely, a breakdown below this level might reignite selling pressure, though the reduced inventory of remaining tokens (38 million) limits the magnitude of such a decline.

Strategic Entry Points for Long-Term Bulls

For investors with a multi-year horizon, the current environment offers a compelling risk-rebalance. The gradual release of FTX's Solana holdings, combined with institutional absorption strategies, has already mitigated the worst of the volatility. Meanwhile, Solana's technological upgrades and ETF inflows position it to capitalize on broader crypto market recovery.

A strategic entry could focus on buying dips near key support levels, particularly if the price stabilizes above $123.65. Diversifying exposure through dollar-cost averaging-given the vesting schedule of remaining FTX tokens-could further reduce risk. Long-term bulls should also monitor validator growth and developer activity, as these metrics will determine Solana's ability to maintain its competitive edge in the layer-1 space.

Conclusion

FTX's Solana liquidation, once a source of panic, has evolved into a catalyst for market maturation. While the remaining 38 million SOL will continue to influence price dynamics, the institutional coordination and technical resilience of the Solana network suggest that the asset is no longer at existential risk. For long-term investors, the current price consolidation and reduced selling pressure may represent a rare opportunity to acquire Solana at a discount-provided they are prepared to weather short-term volatility and bet on its long-term narrative.